Description

Carpenter Technology: Engine Orders Are Spiking—But Is Supply Ready for the Aerospace Boom?

Carpenter Technology delivered a second quarter fiscal year 2026 performance marked by record operating income and expanding operating margins, driven primarily by strong demand in the aerospace and defense markets. Operating income reached $155 million, a 31% increase year-over-year and slightly above the prior quarter, supported by the Specialty Alloys and Operations (SAO) segment’s adjusted operating margin expanding to a record 33.1%. This marked the sixteenth consecutive quarter of margin expansion for SAO, reflecting effective production scheduling, productivity improvements, cost management, and product mix optimization. Total sales excluding surcharge increased 8% year-over-year but declined 2% sequentially due to calendar year-end factors such as available operating days and customer closures. Aerospace and defense sales were up 15% year-over-year but fell 1% sequentially; however, aerospace bookings increased notably, especially with commercial aerospace orders rising 23% sequentially. Defense orders were down materially due to a government shutdown but showed signs of rapid recovery.